Peter finds the perfect location for his sushi restaurant and wants to buy or rent the space. Although it is three years earlier then he wanted to open his restaurant, he does not want to miss this opportunity. However, he does not have the money to buy it.
During an investment club meeting with all of his housemates, Peter brings up the idea of the investment club buying the building and renting it to him so he could open up his business. The housemates decide this is an idea worth considering, but they want to do it separately from the investment club.
A summary of the housemates’ goals can be found in the first Continuing Case problem in Chapter 1.
1. What form of ownership would you recommend using for the new business, and why?
2. You meet with Leigh and she tells you about the housemates’ interest in buying the building and renting it to Peter for his restaurant. What advice would you give her about the dangers of real estate investing before they buy the property?
3. Leigh also wants to know about the benefits of investing in real estate. What would you tell her?
4. What would you do if you were one of the housemates? Why?
Continuing Case problem in Chapter 1
Throughout the text, the continuing case scenario at the end of each chapter will involve situations encountered by the housemates of 906 East College Street. All of the residents are either current students or recent graduates. Leigh, Blake, and Nicole are siblings. Their parents bought the home, which is close to campus, as an investment when Leigh started at the university her freshman year. The following profiles describe each of the housemates and their intermediate goals.
1. For each housemate, identify a SMART short-term goal that supports his or her success in achieving an intermediate goal.